Mobile Banner Ads To Drop In Popularity, Native And Video Ads Gain Momentum

Banner display ads will no longer be the format of choice for many mobile advertisers and marketers in 2016, a study from Trusted Media Brands , Inc. has found. The survey of clients and agency executives, released Wednesday, was conducted by Advertiser Perceptions.

Although display ads -- including banners -- saw immense growth in the third quarter of last year (mobile accounted for 55% of all display ad clicks in the third quarter), many consumers and advertisers feel their interruptive nature may do more harm than good.

According to the survey, 63% of respondents used display banners in 2015, while this year only 45% expect to do so.

Video and native ads are considered to be less interruptive to mobile user experience and better at lifting brand awareness and engagement. Some 45% of respondents expect to use video in 2016, with 46% planning to use pre- or mid-roll. Forty-five percent of respondents plan to use native ads in mobile, down from 50% last year.

Among the major benefits of native and video ads, the survey found they are perceived to be less intrusive, increase brand awareness, and foster better engagement and interaction. As more video formats in addition to pre and mid-roll become available and reliable, mobile video will most likely become an even more highly desirable format, commanding high CPMs.

In October, eMarketer noted that both video and display were well positioned to help mobile programmatic spending take off this year, and maintain its ascendancy through 2017.

Formerly known as Reader’s Digest, Trusted Media Brands, Inc. is the umbrella underneath which publications like Taste of Home, Family Handyman and Reader’s Digest now reside.

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